Weakened Dollar
Back on March 24, President Obama stated that the US Dollar is “extraordinarily strong”. However, since 2002, the US Dollar has lost nearly 30% of its purchasing power. Many financial analysts blame this devaluation on the Federal Reserve’s excessive money printing and artificially low interest rates, as well as the profligate spending and undisciplined borrowing of the Bush administration.
As the Obama administration borrows and spends even more, and the Federal Reserve artificially depresses interest rates and prints trillions of dollars out of thin air, what will the value of our Dollar be in another seven years? Will it lose yet another 30% or more?
Michael H said:
A total mis-understanding of the psychology behind the motivation of America’s enemies throughout the world has led to this foolish foreign policy stance by the Obama administration:
Obama Quote below:
\\The whole notion was that if we showed courtesy or opened up dialogue with governments that had previously been hostile to us, that that somehow would be a sign of weakness,\ Obama said, recalling his race for the White House and challenging his critics today.
\The American people didn’t buy it,\ Obama said. \And there’s a good reason the American people didn’t buy it — because it doesn’t make sense.\\
The Obama administration clearly does not understand the psychology of good and evil in the world, and the citizens of the US that voted his administration into office are naive to the threat our enemies pose.
What does not make sense, Mr President, is that a foreign policy stance that beleives that the forces of evil works in the world will will some how change if we are just accomodating to them.
History teaches that appeasement of evil in the world only leads to one thing…The strenghtening of that evil. Remember Great Britian’s Prime Minister Chamberlin before WWII apeasing Hitler? Just an observation, but I’d say that did not work….
Michael
April 19th, 2009 at 7:48 pm
Daniel said:
“since 2002, the US Dollar has lost nearly 30% of its purchasing power”
Source of claim please?
April 20th, 2009 at 5:51 pm
Copperhead39 said:
You don’t need a “source” to prove the 30% loss, just look at the foreign exchange rates. How many Euros or Yen or Swiss Francs does a dollar buy now compared to 2002? Or look at commodity prices. How many dollars does it take to buy a barrel of oil or an ounce of gold or a bushel of corn now compared to 2002? Volcker is right. And the 9 trillion in new debt being proposed by Obama and approved by the Congress will cost us at least another 30% to 50% in the next ten years.
Her is something to think about. I have 15 grandchildren. Each one of them in on the hook for $22,000 as their share of our national debt TODAY. In ten years their share will be $51,000 each, and each one of them will pay $114,000 in Federal taxes during their working lives just to pay the interest on their share of the national debt.
You can’t fix stupid but you can vote it out!
April 21st, 2009 at 11:38 am
Daniel said:
Yeah, you do need a source to prove 30%. Otherwise you’re just wildly coming up with estimates, and anyone with the least bit of intelligence from Keynesnians are going to ask where and how you came up with that data if you blurt out 30%
Comparing the dollar to swiss francs doesn’t cut it, I’m afraid, I’d like a bit more concrete data than just going to some website and comparing gold vs dollar or oil. A careful put together study, something like Mish would do, would be more impressive.
April 22nd, 2009 at 3:07 pm